The Millionaire Next Door: Are You One?

Questions on how we spend our money and our time - consumer goods and services, home and vehicle, leisure and recreational activities
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gouldnm
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The Millionaire Next Door: Are You One?

Post by gouldnm » Sun Jun 29, 2014 7:38 pm

I drive a 1999 Toyota Camry. I could easily afford a new car, and yet somehow, I just can't bring myself to buy a new car when my old one seems to be running fine. At this point it's become like a badge of pride that I drive an older car. I look around at all the people around me driving newer and/or more expensive cars, and I get a certain amount of satisfaction knowing that:

#1. I'm not wasting money like they are (unless you are absolutely passionate about cars, there is absolutely no need to be buying an expensive car)

#2. Thanks to being a boglehead all these years, I'm worth a lot more than most of my peers, but THEY HAVE ABSOLUTELY NO IDEA. Not only do I drive an older car, but I also live in a town home when I could easily afford a much larger,more expensive house.

I'm like a textbook example of the "millionaire next door". I just wonder how many other people out there are in this situation where they live well below their means, and people have absolutely no clue how much they're actually worth?

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Tycoon
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Re: The Millionaire Next Door: Are You One?

Post by Tycoon » Sun Jun 29, 2014 7:43 pm

We fall into that category. My neighbors have no clue. We live WELL below our means.
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livesoft
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Re: The Millionaire Next Door: Are You One?

Post by livesoft » Sun Jun 29, 2014 7:48 pm

All my neighbors are multimillionaires, but I have no clue to their actual net worth. It could be as low as $2 million and probably as high as $30 million. I just don't know.

Some do drive Camrys and Civics, etc. But others drive other vehicles.
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pennstater2005
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Re: The Millionaire Next Door: Are You One?

Post by pennstater2005 » Sun Jun 29, 2014 7:51 pm

^
You know a lot more about your neighbors than I know about mine.
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Buckeye
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Re: The Millionaire Next Door: Are You One?

Post by Buckeye » Sun Jun 29, 2014 7:53 pm

Nope.

Not a millionaire AND new car shopping to boot. :)

Dopey
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Re: The Millionaire Next Door: Are You One?

Post by Dopey » Sun Jun 29, 2014 8:02 pm

Hope to be. My retirement accounts alone should be there by age 43.

And I won't drive my kids in my vehicle for safety reasons, so I've got that part covered.... :?

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Re: The Millionaire Next Door: Are You One?

Post by livesoft » Sun Jun 29, 2014 8:03 pm

pennstater2005 wrote:^
You know a lot more about your neighbors than I know about mine.
That's probably a consequence of small-town cul-de-sac living and not having moved in 20 years. That, plus walking the dog twice a day.
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baw703916
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Re: The Millionaire Next Door: Are You One?

Post by baw703916 » Sun Jun 29, 2014 8:14 pm

Sounds like there's still an element of competing with the neighbors (albeit in frugality rather than consumption).

The ideal to always have enough money for anything you might want or need to buy, whether planned in advance or spur of the moment/emergency, and not to concern oneself with what the neighbors are doing.
Most of my posts assume no behavioral errors.

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Ged
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Re: The Millionaire Next Door: Are You One?

Post by Ged » Sun Jun 29, 2014 8:18 pm

livesoft wrote:
pennstater2005 wrote:^
You know a lot more about your neighbors than I know about mine.
That's probably a consequence of small-town cul-de-sac living and not having moved in 20 years. That, plus walking the dog twice a day.
Probably more because status seeking is a popular activity in affluent areas.

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Re: The Millionaire Next Door: Are You One?

Post by mac808 » Sun Jun 29, 2014 8:20 pm

I started off with clunkers as a MND type. Now I can afford pretty much anything and still be living within my means, which is the main lesson from MND as I remember. But I still love and drive reliable 5-10 year old cars. I like people assuming I am lower/middle working class, as it helps me blend in better and avoids a lot of liability (e.g. if I get into a fender bender in a 10 year old Corolla, the other party has pretty low expectations). More bad than good comes from a high profile, from what I have seen. Also, I don't have to worry about dents and scratches since there are always already a few on the vehicle. Just one less thing to worry about.
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Pinotage
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Re: The Millionaire Next Door: Are You One?

Post by Pinotage » Sun Jun 29, 2014 8:22 pm

Congrats OP!

It is awesome that your investing habits, lifestyle choices, and focus on value have brought you to a happy & financially secure place in life.

I also drive an older car and I don't see value in upgrading right now. Not worried about dents, dings, or dog hair at this stage :D

However, I respectfully challenge the notion that everyone driving an expensive car has spent foolishly. Seems like this board enjoys that idea sometimes. I am sure some of the folks you see driving luxury cars are flirting with bankruptcy, while some of them just have a lot of money. One man's Range Rover is another man's 25 year old Camry.

Good luck, and enjoy the life you lead. :beer
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Tycoon
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Re: The Millionaire Next Door: Are You One?

Post by Tycoon » Sun Jun 29, 2014 8:22 pm

I remember talking with my neighbor one afternoon. Guests of his had just left his house in a Mecedes AMG and he was proud to inform me that these guests were millionaires. I didn't have the heart to tell him that he had been living next to millionaires for many years.
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HardKnocker
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Re: The Millionaire Next Door: Are You One?

Post by HardKnocker » Sun Jun 29, 2014 8:28 pm

Dopey wrote:Hope to be. My retirement accounts alone should be there by age 43.

And I won't drive my kids in my vehicle for safety reasons, so I've got that part covered.... :?
Please explain. :confused
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Dopey
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Re: The Millionaire Next Door: Are You One?

Post by Dopey » Sun Jun 29, 2014 8:39 pm

HardKnocker wrote:
Dopey wrote:Hope to be. My retirement accounts alone should be there by age 43.

And I won't drive my kids in my vehicle for safety reasons, so I've got that part covered.... :?
Please explain. :confused
My wife has the 2011 mid-size SUV (paid for) with the car seats for her daily driver. We also use it for family trips.

I drive the 1999 compact car that blue books for $1200 back and forth to work (in-town commute). The vehicle isn't worth putting new suspension/tires on and my needs for a vehicle aren't worth buying a new one.

We're 27/25 respectively, so I'm' extrapolating a bit on my retirement account projections. I'd rather gain a good financial base than buy even a reasonable used car right now.

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TheTimeLord
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Re: The Millionaire Next Door: Are You One?

Post by TheTimeLord » Sun Jun 29, 2014 8:41 pm

Ged wrote:
livesoft wrote:
pennstater2005 wrote:^
You know a lot more about your neighbors than I know about mine.
That's probably a consequence of small-town cul-de-sac living and not having moved in 20 years. That, plus walking the dog twice a day.
Probably more because status seeking is a popular activity in affluent areas.
I don't think so he said he lived in a $200,000 house in another thread. Nothing status seeking about that.
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hoppy08520
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Re: The Millionaire Next Door: Are You One?

Post by hoppy08520 » Sun Jun 29, 2014 8:44 pm

We have a 9-year-old Toyota minivan with scratches that I'm too cheap to repair. Why bother?

I bike to work instead of getting a second car. Saves us a couple of thousand $ per year. And I'm healthier and happier.

Hoping to be a MND some day.

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bogleblitz
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Re: The Millionaire Next Door: Are You One?

Post by bogleblitz » Sun Jun 29, 2014 9:08 pm

Yes, according to the book Milllionaire next door, I'm a PAW (Prodigious Accumulators of Wealth).

I drive a Camry and could afford other cars in cash.

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Re: The Millionaire Next Door: Are You One?

Post by rec7 » Sun Jun 29, 2014 9:32 pm

livesoft wrote:All my neighbors are multimillionaires, but I have no clue to their actual net worth. It could be as low as $2 million and probably as high as $30 million. I just don't know.

Some do drive Camrys and Civics, etc. But others drive other vehicles.
Sounds like a nice place Livesoft. Where I live I would says it can be quiet a walk between millionaires for the most part. Someone with two million would be a very long walk.

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Re: The Millionaire Next Door: Are You One?

Post by letsgobobby » Sun Jun 29, 2014 9:33 pm

Ged wrote:
livesoft wrote:
pennstater2005 wrote:^
You know a lot more about your neighbors than I know about mine.
That's probably a consequence of small-town cul-de-sac living and not having moved in 20 years. That, plus walking the dog twice a day.
Probably more because status seeking is a popular activity in affluent areas.
Does one have to be status seeking to respond to this thread?

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Re: The Millionaire Next Door: Are You One?

Post by john94549 » Sun Jun 29, 2014 9:51 pm

My neighbors are a mixed bag. Those who have moved in over the past five years or so, I'd say they're uber-rich techies.

Those of us who bought back in the 70's and still live here (read: old farts), we mostly drive old Buicks.

Being a millionaire isn't what it used to be. Ask the folks next door. Actually, don't ask them, he's a techie CEO.

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Re: The Millionaire Next Door: Are You One?

Post by LeeMKE » Sun Jun 29, 2014 9:52 pm

Humm. We are millionaires so long as we count both our assets, might make multimillionaire status in a few years. And we certainly act like those described in "The millionaires next door"

Funny thing is, years ago when we were striving, shiny expensive new cars were a temptation, along with large homes and other shiny objects. We dabbled in shiny toys, but kept our focus on saving for retirement.

But now that we are over the hump, those things are just not attractive to us.

Most people probably think we are financially frail:

I sold my car, so we are down to one car, and take the bus occasionally. My husband drives a Jeep with too many miles on it IMHO, but I can't pry it off him.
We rent and no longer own a home.
We don't have garage sales of shiny objects, and not many could guess what we pay for most objects we own.

Our perspective:

I don't have to mess with maintaining a car when I only used it for 1000 miles/year. When the bus picks us up outside our front door, drops us in front of the theatre, and brings us back, why would we drive and deal with parking 3 blocks away? (Our friends feel so sorry for us. But I have to fight them off, not wanting to walk 3 blocks in the rain for a free ride home, when I can hop on a warm dry bus, and get dropped at my door.)

We have staff on-site who take care of all maintenance, and live in the very best neighborhood of our city. Rent is cheaper than what we paid in condo fees and PITI. The staff take care of plant watering and pet care when we are gone. And we plan to leave in a few years to travel the world and won't have to cover expenses for an empty property while we are gone.

It's bad security to expose your possessions to strangers pawing through your stuff at a garage sale. Valuable stuff we give away or sell on eBay, and everything else goes to charity. I'd rather have the tax deduction and my weekends. Some of our furnishings are from IKEA, and we commission original art occasionally. Most visitors gush over the built-in cabinets and pass right by the original art and antiques.
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wander
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Re: The Millionaire Next Door: Are You One?

Post by wander » Sun Jun 29, 2014 9:57 pm

I am driving an old car, but seriously, I don't pay attention to what my neighbors are driving. I am not looking at people and feel happy about myself. The reason I am driving an old car is because I want to challenge myself to repair when it breaks. It may help me economically, but that's secondary.
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Re: The Millionaire Next Door: Are You One?

Post by Kevin M » Sun Jun 29, 2014 9:59 pm

I think many Bogleheads are in this category--almost by definition; maybe not the millionaire part, but at least the LBYM part.

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island
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Re: The Millionaire Next Door: Are You One?

Post by island » Sun Jun 29, 2014 10:01 pm

Tycoon wrote:We fall into that category. My neighbors have no clue. We live WELL below our means.
+1 but I also have no clue about them.
I think most people have no clue what anyone else's net worth is and that's fine with me.

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Re: The Millionaire Next Door: Are You One?

Post by bpp » Sun Jun 29, 2014 10:03 pm

1) I'm not a millionaire.
2) I don't live next door. (The neighbors do.)

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Re: The Millionaire Next Door: Are You One?

Post by NAVigator » Sun Jun 29, 2014 10:35 pm

I don't worry about the net worth of the neighbors. I hope they don't worry either. I suspect they would be surprised. I would be as well, but not as favorably.

It seems that the credentials for admission into this two comma club involve the vehicle you drive. Full disclosure: mine is a well maintained 1999 car.

I read TMND when I checked it out from the library. I found it to be less of a guide and more of a confirmation of my LBYM lifestyle.
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Re: The Millionaire Next Door: Are You One?

Post by Diogenes » Sun Jun 29, 2014 11:22 pm

LBYM really has nothing to do with the car you drive. If you drive an older and perhaps less safe and less reliable car as a badge of honor when you don't need to...that is nothing to brag about.
If you have everything else in your financial house in order, no bills, don't need to access your retirement funds to live, etc., there is no reason not to drive something nicer if you choose. Most people like that pay cash for a vehicle anyway.

There is no award for being obsessively extra frugal until death, if you have no need to be. Your balance sheet becomes quite meaningless after that. Oh, and don't worry about the neighbors.
Truth and clarity are important in all things...

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Re: The Millionaire Next Door: Are You One?

Post by Cheryl604 » Mon Jun 30, 2014 12:45 am

I, incidentally, am just reading this book for the first time. As I was reading through the first few chapters-where there are a bunch of numbers thrown at you regarding average salaries and how much millionaires have spent on certain consumer goods-I found myself wondering how those numbers have changed in the past 20 years. Does anyone know if this research has been updated, or have the numbers been adjusted to reflect today's dollars?

Thanks,
Cheryl

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Re: The Millionaire Next Door: Are You One?

Post by privateer79 » Mon Jun 30, 2014 1:00 am

an elderly relative of mine who recently passed was in the 2 comma club.... he drove a beat up '98 mercury, lived super-frugally and would peddle toys/novelties as a street vendor at events just for something to do...

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Re: The Millionaire Next Door: Are You One?

Post by island » Mon Jun 30, 2014 1:05 am

Diogenes wrote:LBYM really has nothing to do with the car you drive. If you drive an older and perhaps less safe and less reliable car as a badge of honor when you don't need to...that is nothing to brag about.
If you have everything else in your financial house in order, no bills, don't need to access your retirement funds to live, etc., there is no reason not to drive something nicer if you choose. Most people like that pay cash for a vehicle anyway.

There is no award for being obsessively extra frugal until death, if you have no need to be. Your balance sheet becomes quite meaningless after that. Oh, and don't worry about the neighbors.
Hallelujah! Couldn't agree more.

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Re: The Millionaire Next Door: Are You One?

Post by in_reality » Mon Jun 30, 2014 3:16 am

gouldnm wrote: I just wonder how many other people out there are in this situation where they live well below their means, and people have absolutely no clue how much they're actually worth?
M Club?
I don't have a car.
I don't get my shirts pressed at the dry cleaner (maybe I should).
My iPad case is falling apart from use (and keyholder and shoes).

I do take great pride in my casual non-verbal communication in just about any situation though and appreciate the recognition I get (how you stand and move, for example, says a lot about you). So I am very sympathetic to those who spend money for appearance. I too have a compulsion for favorable recognition.

Not everyone who spends money is doing it for recognition and not everyone who craves recognition is spending money to get it.

And no I do not want people to know what I am worth.

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Re: The Millionaire Next Door: Are You One?

Post by staythecourse » Mon Jun 30, 2014 5:32 am

Diogenes wrote:LBYM really has nothing to do with the car you drive. If you drive an older and perhaps less safe and less reliable car as a badge of honor when you don't need to...that is nothing to brag about.
If you have everything else in your financial house in order, no bills, don't need to access your retirement funds to live, etc., there is no reason not to drive something nicer if you choose. Most people like that pay cash for a vehicle anyway.

There is no award for being obsessively extra frugal until death, if you have no need to be. Your balance sheet becomes quite meaningless after that. Oh, and don't worry about the neighbors.
100% agreed. As much as we like to believe different bogleheads are human. Like every other human we tend to want acceptance from others that we "belong" and want positive reinforcement of their actions. In the real world most try to get that through material objects. Here at bogleheads we get that through finding other LBYM mentality folks. For some it is helpful because it reinforces their actions.

Personally, I spend money on stuff I want (nice home to enjoy) and don't on others (clothes and cars) not because I am trying to LBYM, but according to what ultimately gives me happiness in life. Hope others do the same.

Good luck.
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Re: The Millionaire Next Door: Are You One?

Post by TheTimeLord » Mon Jun 30, 2014 6:17 am

Nope, current car is a 2009 Lexus 350 ES and one of the best purchases I ever made. Since I enjoy my car so much I have no temptation or desire to replace it before 8-10 years. And since it, at least to me, is a very nice car I find it somewhat motivating as it daily illustrates the fruits of my labor. Frankly don't care what others think about it, its my car, which probably isn't much since I have to check the plates every time I get in because there are quite a lot of them in the parking lots in my area.
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Re: The Millionaire Next Door: Are You One?

Post by acegolfer » Mon Jun 30, 2014 6:24 am

Diogenes wrote:LBYM really has nothing to do with the car you drive. If you drive an older and perhaps less safe and less reliable car as a badge of honor when you don't need to...that is nothing to brag about.
If you have everything else in your financial house in order, no bills, don't need to access your retirement funds to live, etc., there is no reason not to drive something nicer if you choose. Most people like that pay cash for a vehicle anyway.

There is no award for being obsessively extra frugal until death, if you have no need to be. Your balance sheet becomes quite meaningless after that. Oh, and don't worry about the neighbors.
Another +1

I don't care what others do. I seek my own happiness. If it involved driving a fancy car, then I would buy one right now because I can afford one.

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Re: The Millionaire Next Door: Are You One?

Post by HardKnocker » Mon Jun 30, 2014 6:32 am

It's not necessary to flog yourself as a symbol of your devotion to accumulating wealth.
“Gold gets dug out of the ground, then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility.”--Warren Buffett

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Re: The Millionaire Next Door: Are You One?

Post by 1210sda » Mon Jun 30, 2014 6:54 am

Most folks I know do not make their net worth public knowledge. All too often we extrapolate their net worth from their possessions (car, house, jewelry, etc). This can lead to a lot of false readings.

When my kids were growing up, I would tell them....when a person has a big house or a fancy car, the only thing you know for sure is that they spent a lot of money on the item. You can't tell if they are wealthy, or in deep debt. Could be either.

1210

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Re: The Millionaire Next Door: Are You One?

Post by carolinaman » Mon Jun 30, 2014 7:12 am

Diogenes wrote:LBYM really has nothing to do with the car you drive. If you drive an older and perhaps less safe and less reliable car as a badge of honor when you don't need to...that is nothing to brag about.
If you have everything else in your financial house in order, no bills, don't need to access your retirement funds to live, etc., there is no reason not to drive something nicer if you choose. Most people like that pay cash for a vehicle anyway.

There is no award for being obsessively extra frugal until death, if you have no need to be. Your balance sheet becomes quite meaningless after that. Oh, and don't worry about the neighbors.
+1
Very well stated. Why not enjoy some of your hard earned money on life's pleasures, assuming you have your retirement bases covered? Some people on this forum take frugality way too far. For the record, I have driven Camrys for the last 25 years although I usually trade them in after 8 to 10 years. I could easily have afforded more expensive cars but never felt the need to do so. OTOH, I do like to spend money in other ways, like on nice vacations, sporting events or nice restaurants.

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Re: The Millionaire Next Door: Are You One?

Post by hoppy08520 » Mon Jun 30, 2014 7:13 am

Cheryl604 wrote:I, incidentally, am just reading this book for the first time. As I was reading through the first few chapters-where there are a bunch of numbers thrown at you regarding average salaries and how much millionaires have spent on certain consumer goods-I found myself wondering how those numbers have changed in the past 20 years. Does anyone know if this research has been updated, or have the numbers been adjusted to reflect today's dollars?
I read/skimmed the book for the first time last month myself, and wondered the same thing.

The book was published in 1996. Today, 18 years later, being a millionaire isn't what it used to be. $1M in 1996 dollars is $1.5M today (per Bureau of Labor Statistics inflation calculator: http://data.bls.gov/cgi-bin/cpicalc.pl). When you see prices quoted in the book, add 50% more to normalize them to today's terms (e.g. a $500 suit then is a $750 suit today). That being said, it seems like some consumer good (electronics perhaps?) have seen less inflation, but I'm not sure.

What I was wondering about wasn't so much the actual price inflation, but whether the same book would be written today. The theme of MND's research 18 years ago was that many millionaires got that way through the virtues of LBYM, hard work, a penny saved is a penny earned, etc., even with non-flashy careers. With the barbell economy of today (shrinking middle class, less class mobility), it seems the rising millionaires are less the plumbers and accountants and truck drivers that are profiles in the book, but more people in finance, tech, etc.

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Re: The Millionaire Next Door: Are You One?

Post by IlliniDave » Mon Jun 30, 2014 7:28 am

Well, aside from the technicality that I'm not quite a millionaire yet ...

I do probably fit the profile somewhat. I live in a relatively modest home in a nice neighborhood (house worth ~200K), drive a 12-year-old Montero Sport, wear clothes from Walmart and Target 95% of the time, eat a lot of lentils, do my own yard work, and recently started changing my own oil. I still have a CRT television and my cell phone flips open. My vacations are by car to visit relatives.

I'm not sure what my neighbors think of me. I certainly don't put on much of an outward show of wealth. But I'm also pretty confident regarding things financial and that probably shows. With one exception my neighbors don't try to put on airs affluence either. One who has a rental real estate business I believe is quite wealthy on paper, but lives a very humble lifestyle. There are also a couple retired couples on my cul de sac who seem to live quiet and comfortable, but modestly.

There's no arms race amongst the Joneses on my block.

In Millionaire Next Door terms I've just crossed over the midpoint of the "Average Accumulator of Wealth range (NW > age/10 * income). My married years were quite consumption heavy and of course dissolution of a marriage can exact a steep price. So I'm probably growing at a PAW rate but I started deeply in UAW territory.
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Re: The Millionaire Next Door: Are You One?

Post by The Wizard » Mon Jun 30, 2014 7:36 am

A millionaire isn't what it used to be anymore, with house lots selling for $300K and more and practically ALL of my recent co-worker retirees with well over a paltry $1,000,000 in tax-sheltered savings.
So it's quite easy to answer YES to the OP's question...
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Re: The Millionaire Next Door: Are You One?

Post by Working2notWork » Mon Jun 30, 2014 7:45 am

IlliniDave wrote:NW > age/10 * income)
Are you counting home equity in this?

(Let the debate begin!)

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Re: The Millionaire Next Door: Are You One?

Post by Longtimelurker » Mon Jun 30, 2014 7:47 am

I have found that the more money I have, the less interested I am in things that display wealth for the sake of displaying wealth. Years ago I wanted a Cartier watch, no interest now. Years ago I wanted an M5 Convertible, no interest now. Thats not to say I am frugal. My wife and I eat out often, we travel, once we buy a home I'll put in solar power and buy the third generation Tesla. But all of these things have deeper motivations then a display of wealth, and each increase our happiness - which should be the point of all of this.

At the same time I see many who have little or no savings driving $80k cars on leases. I believe in most cases this is driven more through self-conscienceness over their financial position, and is an overcompensation on their part. "Look at me, I can afford a lease payment!!!!" Groups of these people gather and convince each other how well off one another is. I have never been a follower, so this has never held sway over me. But to some, its necessary to keep up with the Jones's - if only to mask the financial inadequacies that exist an inch beneath the surface.
Stay the course. If you can't resist greed, and fear is proven to be 2x as strong, you are doomed as an investor.

Working2notWork
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Re: The Millionaire Next Door: Are You One?

Post by Working2notWork » Mon Jun 30, 2014 7:56 am

Longtimelurker wrote:... I'll put in solar power and buy the third generation Tesla. ...
I cannot wait for the day I can get one. I love everything about the car and really respect the man behind it.


As for the solar panels, I did a lot of research and read about a lot of people that were unhappy (researched Solar City) with their choice. The company receives all the gov't funding as well as any energy put back onto the grid by you. Yes, that is their business model - how they make $$ - and it seems to be working for them, but the article continues on about another individual that had it installed wrong and ended up paying more in the end - had to use power from the grid, almost doubling his previous bill. Not sure how 'real' these stories are, but just thought I'd pass them along.

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TheTimeLord
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Re: The Millionaire Next Door: Are You One?

Post by TheTimeLord » Mon Jun 30, 2014 7:58 am

The Wizard wrote:A millionaire isn't what it used to be anymore, with house lots selling for $300K and more and practically ALL of my recent co-worker retirees with well over a paltry $1,000,000 in tax-sheltered savings.
So it's quite easy to answer YES to the OP's question...
So basically everyone you work with who is retiring fits into the bottom half of the top 1% according to the numbers earlier in this thread on Net Worth?
IMHO, Investing should be about living the life you want, not avoiding the life you fear. | Run, You Clever Boy! [9085]

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Chan_va
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Re: The Millionaire Next Door: Are You One?

Post by Chan_va » Mon Jun 30, 2014 8:23 am

This thread is plumbing new depths of self-congratulation.

While some people drive expensive cars that they cant afford, many others drive expensive cars because they are way richer than you and I. There is a whole universe of very rich people out there. Their orbits don't typically intersect with the average Boglehead, but that doesn't mean they don't exist.

freddie
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Re: The Millionaire Next Door: Are You One?

Post by freddie » Mon Jun 30, 2014 8:31 am

It was a little better in the 90s when the book was published but yeah the people that are 70 and retired with 2 million dollars are in the same boat as people making 100k and working. Neither one should be buying 70k cars and 5k watches.

The Wizard wrote:A millionaire isn't what it used to be anymore, with house lots selling for $300K and more and practically ALL of my recent co-worker retirees with well over a paltry $1,000,000 in tax-sheltered savings.
So it's quite easy to answer YES to the OP's question...

Longtimelurker
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Re: The Millionaire Next Door: Are You One?

Post by Longtimelurker » Mon Jun 30, 2014 8:46 am

Chan_va wrote:This thread is plumbing new depths of self-congratulation.

While some people drive expensive cars that they cant afford, many others drive expensive cars because they are way richer than you and I. There is a whole universe of very rich people out there. Their orbits don't typically intersect with the average Boglehead, but that doesn't mean they don't exist.
I tend to give people the benefit of the doubt, and also celebrate the success of others. I have found this to be a successful life strategy for building relationships and increasing happiness.

Best.
Stay the course. If you can't resist greed, and fear is proven to be 2x as strong, you are doomed as an investor.

Andyrunner
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Re: The Millionaire Next Door: Are You One?

Post by Andyrunner » Mon Jun 30, 2014 8:56 am

No Im not. Plan is to be one though. We are still young 29/31, max out our 403b, have a pension and only debt is a house we own ~1/3 of with the goal of paying it off in 10-12 years.

It will be interesting to see how our net worth compounds over the next 10-15 years (assuming no major recessions/layoffs etc). I think it will compound faster than I expect, though I play it conservitive.

Having one kid and wanting to have another will definatly change things though. From what I have seen, they dont get cheaper.

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hoppy08520
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Re: The Millionaire Next Door: Are You One?

Post by hoppy08520 » Mon Jun 30, 2014 8:59 am

Chan_va wrote:This thread is plumbing new depths of self-congratulation.
I'm sure there's some truth to that, but at the same time we need a sanctuary from the constant bombardment of suggestions we get to buy, spend, buy, spend. If coming here and proclaiming your frugality with like-minded people helps us withstand the lure of mindless consumerism, then why not? No doubt one can take this -- or anything -- to unhealthy extremes. Speaking for myself, I'm in no danger yet of being the richest man in the graveyard one day in the future, so buying used cars and driving them for a while is not vanity, it's just good sense. Believe me, if I were rich, I'd probably replace our 9-year-old van with a newer one with automatic sliding doors :)

KlangFool
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Re: The Millionaire Next Door: Are You One?

Post by KlangFool » Mon Jun 30, 2014 9:08 am

Hi,

I like Nissan Altima. I bought a brand new Nissan Altima last year. This is the third Nissan Altima that I bought. Now, I have 2 Nissan Altima at home: 2014 and 2006.

A) I do not buy used car.

B) I can afford to buy other car but I don't since I like Nissan Altima.

C) I dine at nice restaurant regularly. I drink gourmet coffee and tea. Those are things that I enjoy and willing to spend money on.

D) I save 30+% of my gross income.

KlangFool

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